However, rates vary significantly between insurers. 21-year-old men are more likely to have car accidents and file claims, so men pay slightly more for car insurance than their female counterparts. Car insurance rates for 21-year-olds are lower than rates for teen drivers, but they're still slightly higher than the costs for drivers 25 and older. The cost of car insurance is high for drivers aged 21 because providers consider them riskier drivers.
Drivers between 18 and 25 years old were the most likely to misunderstand how car insurance coverage works, according to a Forbes Advisor survey on basic knowledge about car insurance. Many insurance providers apply this discount automatically when you have more than one insured vehicle on your policy. While car insurance costs start to drop significantly once you turn 21, they don't stagnate until around age 25. In most cases, the cheapest car insurance for a 21-year-old person will be a plan with limited coverage with several discounts applied to reduce the amount you pay in premiums. There may not be many discounts on car insurance for 21-year-olds because they are known as risky drivers.
It's a good idea to look up car insurance quotes to get the best and cheapest car insurance for a 21-year-old. You want a safe vehicle for your young adult driver, but avoid luxury cars and, especially, avoid sports cars if you want to keep car insurance rates low. Auto insurance providers often offer a small discount to policyholders who pay their premiums in these larger amounts. Opting only for liability coverage will likely cut the cost of auto insurance premiums in half in a plan with full coverage.
The best car insurance for 21-year-olds isn't necessarily the cheapest, but cheap rates definitely help. You can find affordable car insurance with full coverage that has higher liability limits than those required in your state, along with comprehensive and collision coverage to provide protection for your car. In short, car insurance for new drivers over 21 years old can be priced similar to car insurance for new drivers under 21, at least until you have a driving record.